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Last call for beer monopoly

After a Star investigation, many readers would like to see the provincial government take some action to end the Beer Store monopoly. (TORONTO STAR) | Order this photo

Sat., Jan. 3, 2015

Re: Big beer, big money, Dec. 28

Big beer, big money, Dec. 28

Kudos to Martin Regg Cohn on his excellent investigation into the cosy relationship between political parties, their operatives, politicians and the Beer Store. While the nature of the monopoly was no secret, the degree of interconnectedness between government players and Beer Store lobbying is a revelation that is equal parts depressing and infuriating.

The use of Brewery facilities for political fundraising is an egregious and blatant conflict of interest for a provincial government whose basic duty is to protect the public interest, not protect private monopolies.

Another not insignificant matter to ponder when you are enjoying your cold beer is how we are collectively, and mostly unwittingly, supporting the powerful and influential Coors family in the United States —49 per cent of the Beer Store is owned by Molson Coors, in turn controlled by the Coors Brewing Co. in Colorado, and owned by the Coors family.

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It should be brought to light how the Coors family is extremely active in the United States promoting a conservative legislative and policy agenda. One member of the Coors family started the Heritage Foundation, a fervently, if not rabid, right-wing think tank devoted to subverting and abolishing such things as unions, civil rights laws, minimum wages, environmental laws, affirmative action laws, and arms control efforts.

The Centre for Media and Democracy in the U.S. reports that the Coors foundation in the U.S., with assets of over $168 million, has donated heavily to right-wing policy and think tanks whose goals are to roll back progressive achievements.

Not our problem you say? Ongoing Conservative political ads on the radio, with an election only on the horizon sometime in 2015, are testament to how American political thought and practice is borderless. The inspirations drawn by our conservatives from conservatism in the U.S. are numerous and well-documented.

I urge all Star readers with similar outrage to fire off emails to Liberal MPPs protesting the continuation of this egregious quasi-monopoly. Better yet, progressives and moderates among us should give pause and consider the interconnections next time we patronize the Beer Store or contemplate a Molson or Coors product.

Peter Bertollo, Brampton

Martin Regg Cohn’s articles on the Beer Store monopoly is the reason I subscribe to the Star and the reason that journalism matters. His exposure of the cozy relationship between giant brewers and politicians is astounding.

How could anyone receive a venue for a fundraiser, at no cost, complete with free beer and not see this as problematic? The entire distribution of beer in this province is archaic and unfair.

Imagine creating a product that people want, but that you are forbidden to market. Now imagine walking into a charming Ontario craft brewer’s store, sampling the latest beers and walking out with the product of your choice.

Break up the monopoly now.

Francine Dick, Toronto

One outlet, on average, for every 30,000 residents in Ontario. If you live in Toronto or any other large city, and don’t drive a car, you take public transit to a store and struggle to take a 14 kilogram load back home.

From the villages of Ontario, you may drive 30 kilometres or more to an outlet. At the store, you queue to pay inflated and controlled prices in, usually, a warehouse setting, with an incomplete assortment.

This is the state of Ontario’s beer retail system, one which seems more suited to the Soviet Union in 1954.

Recent reports on The Beer Store are revealing to those who wonder why this distribution arrangement continues to be. But Premier Kathleen Wynne assures Ontarians that the system is “working well.”

For who?

Mike Brown, Burlington

I find it so interesting to read the statement from Premier Kathleen Wynne’s office that lobbying does not unduly influence government policy when the articles by Martin Regg Cohn about Big Beer so clearly point otherwise. The trail of so many players moving about could almost be a “Who’s on First” skit.

Dismay was my feeling when there were so many partakers, including my own MPP, of the largesse of the Big Beer monopoly, pocket change to them with their enormous profits, but what a reward back.

Is it any surprise to hear so many cannot bother to vote as so little changes over the years regardless of the party in power?

Maureen White, Mississauga

I, like probably the majority of Ontarians, find it completely incomprehensible and inappropriate that a consortium or company, which has been handed a virtual monopoly to market their product in the province, would not understand the optics and morals of this issue.

Now I could say, okay, I get it — it’s the Liberals and their tried and true Teflon coated cronyism, or as they like to call it, “business as usual.”

But then, as you so accurately pointed out, all the parties are guilty of this immoral behaviour that clearly represents a flagrant conflict of interest. Politics, like justice, must be seen as being done properly as well as being practised properly.

You would think that the Wynne government, for all their “transparency” talk, would put a tad more effort to clean up their act, sadly this is not about to happen any time soon. Further the gullible public continues to swallow this horse manure and skulduggery, while the percentage of the public turning out to vote continues to fall, due to many factors, not the least of which is lack of confidence in those crooks running for office. I would rather elect my dog.

If the Brewer’s Retail group of companies wanted to show their appreciation for having landed this plum deal, they should consider allowing all other public groups to use there facilities free of charge, in an effort to give something back to the community.

The last group that should be receiving a benefit like this from the beer companies is the government or regulatory agency that awards this monopoly. As usual, they both don’t get it. The optics suck.

Tom McAnulty, St. Catharines

Thanks for a revealing exposure of a truly unholy and long standing alliance between the Beer Store and Ontario politicians of all stripes: If not in its actual identification of direct corruption, certainly in its exposure of the great potential of a conflict of interest, and one that works to the disadvantage of most Ontario taxpayers, et al.

When will this monopoly end? When will we be allowed to purchase any beer in any amount we choose, in an environment conducive to a consumer used to real choice?

I suggest the Beer Stores be converted primarily to a bottle collection service, which from the outside and in, it is already well suited.

To all, and for all our sakes, end this monopoly and the company contributions to political parties, which have ensured the longevity of this un-holy alliance.

Richard J. Hart, Mississauga

I was both fascinated and appalled by Martin Regg Cohn’s expose into the – let’s say it — corruption of Ontario politics by Big Beer.

Particularly irritating is the untendered and unnecessary deal for the Beer Store to redeem deposits on liquor bottles returned for recycling. Standard beer bottles are re-used many times, so a deposit return makes sense for them; but for other mixed glass bottles that will be recycled, it makes no difference whether they are collected from the Beer Store or the blue box at the end of my driveway — apart from the hassle to the consumer, and the (expensive, unionized) labour cost for additional handling.

Stephen Young, Carlisle

After reading this article, it is abundantly clear that the foreign-owned beer companies has, and has had, Ontario MPPs in their pockets. Do these companies dictate our provincial politics? Why do we spend millions of dollars for elections?

This article reaffirms my beliefs. Politicians are greedy, self-serving, blood sucking, scumbags who will do anything to remain at the trough and hide from the truth when confronted.

It is disgusting to read that these huge beer companies buy politicians to avoid competition from the small Canadian craft brewers.

Murray Crevits, Kingsville

Thank you for continuing to keep us informed of the sweetheart deals with our provincial government that allow the foreign owned Beer Store to continue gouging Ontarians while lining their own pockets.

I can imagine the following conversation during a budget meeting of the beer consortium:

“It’s for lobby efforts to ensure the government of Ontario continues to allow our monopoly of the billion dollar beer business in Ontario.”

“That’s all?”

“Well, we also have to provide them with a party room and free beer several times a year.” (gales of laughter).

“I’ve heard the current government is promising their constituents to look into eliminating our deal.”

“Well then, maybe we should increase it to $600,000....” (more laughter).

“By the way, where is Ontario again?”

Will our current representatives at Queen’s Park really do something about this travesty? I won’t hold my breath…

Stephen Brouitt, Richmond Hill

Martin Regg Cohn has presented yet again a masterful summation of the subject in your three-page spread. Not much to add, except “fix it.”

According to the penultimate paragraph, this should only take a couple of minutes. (That is in legislative time, of course).

Ron Gibbens, Richmond Hill

The lobbying and financial subornation of the major Ontario political parties by the Brewers Retail owners is a shameful betrayal of our elected officials’ fiduciary duty. It is also a violation of Ontarians’ trust.

As a single voter, I don’t overestimate any influence I have about this issue. But the only way this can be fixed is for individual voters to confront their MPP about it.

As Charles Sousa is both my MPP and the Minister of Finance, I hold him doubly accountable for this deplorable situation and a catalyst (willing or unwilling) for resolving it.

It is my intention to broadly and publicly draw attention to his role until this issue is resolved, or the next election.

Brian McAteer, Mississauga

There is surely only one word to describe the response from Premier Wynne’s office denying that “any individual contribution or interaction may unduly influence government policy”: hogwash!

Eric Balkind, Guelph

Concerning these so-called political donations: if it looks like a bribe and smells like a bribe, it usually is a bribe. Shame on the political parties for accepting these political donations at the expense of the consumers.

W.K. Simon, Mount Forest

Two things need to be changed quite dramatically. The Ontario government needs to introduce federal-like legislation to limit political donations in this province to individuals only at a moderate fixed limit.

Secondly, we need desperately for the sake of our democracy to bring lobbying out into the open. I want to be there when the beer lobbyists show up in whichever cabinet minister’s office to pitch what they want and expect to get from the government. I want the press to be there, with cameras, with a complete text of all proceedings made available to the public.

We strive for transparency in other areas of government; this is the final domain and by far the most important.

Impossible, you say. The expected response is identical to the King John’s reaction to the barons’ demand for rights. All through history, to the vote for the common man, for women (horrors!), the abolishment of the slave trade and then of slavery, religious toleration, gay rights and marriages, a carbon tax — the list is endless — the reaction has always been the same: impossible, the world, the economy will collapse.

Ed Lamb, Toronto

Today’s column by Mr.Cohn is a bit like discovering the truth about Santa. Big Beer and its cronies do not really care about recycling other than drawing traffic from the LCBO to their Beer Store monopoly. What about paying school boards or hospitals to do the same thing?

Why should lobbying outside of convincing voters be an essential part of democracy? It is argued that the beer lobby represents only a small proportion of what other donors give? How small? As small as the average Ontario voter can afford, which given our current economy is likely not very much. Now that lobbying is an essential part of democracy, I guess I should learn to brew beer so that I use those wonderful facilities.

It appears that Big Beer et al are madly hiring the big names in public relations and I like this one, GR, the gurus of government relations. Could this be a strategy to offset what looks likes a conflict of interest given the changes in our laws regarding alcohol and beer distribution and monopoly? Can it be proved that this lobbying does not cause undue influence?

When I’ve got my brewing chops down pat and my distribution in order, I’d like to join the B.B.B. (big beer boys). I’d like to lobby for causes like access to care for seniors, a desperately needed review of our Condo Act, stable, above the level of poverty employment for our young generation.

I can’t wait; got Chris Morley to help set up my sound system or use my free tickets to see the Leafs win.

Don Graves, Burlington

It has become commonplace for the media to root out examples of incompetence in the public sector. Your coverage of the private sector is much less stringent about holding it to a similar standard. A case in point: Ted Moroz, president of the Beer Store.

For several years the CEO of this almost-monopoly, Moroz has been (by the company’s own admission) unable to do any better than break even financially. In the beer biz!

Perhaps to try to cover for this leadership shortcoming, he has directed the further expenditure of clearly scarce hundreds of thousands of dollars on lobbyists, whom Premier Wynne (who really should know) points out “do not influence government policy.” Well, not “unduly” anyway.

Several years as CEO without making money. Wasting money on ineffective flacks. How does this guy keep his job? In the public sector, he would long ago have been forced to walk at least the reputational plank.

Ab Dukacz, Mississauga

Regg Cohn’s expose on the political skullduggery that enables the Beer Store, a foreign owned monopoly consortium, to maintain its stranglehold on the retail distribution of suds in Ontario is certainly an eye opener, but not a complete surprise. We’ve long known that beer prices in Ontario are inflated relative to other jurisdictions. Less clear were the reasons why.

Despite what Premier Wynne says, big businesses, like the Brewers, lobby politicians and make political contributions in order influence government decision making. If it didn’t work, why else would they do it? This is not news.

What’s different in this case is that successive Ontario governments have interfered with the free market by colluding with the brewing industry to strike sweetheart deals that protect its other monopoly (the LCBO), and by perpetuating an outdated monopoly distribution system that eliminates competition, fixes prices to gouge the consumer, and ensures obscene profit margins for the brewers who, in turn, finance political campaigns.

This is how government conducts business in Ontario. In other countries they call it corruption.

Paul MacDonald, Warkworth

The inbred nature of these lobbying arrangements is troubling. When top-end people in the private sector leave a company, they generally have to sign a non-compete letter saying they won’t approach or poach their former employers clients.

We could fix some of these problems if staff leaving a public sector job to enter the private sector for lobbying have a two-year (or longer) ban from lobbying their former employer — that would be “us” last time I checked.

As usual the taxpayers are the big losers in all this public/private inbreeding.

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